Private rented sector flourishes
- 17th September 2008
- Landlord Property News
The last three months has seen a rise of almost 20% in new tenancies, according to the latest Association of Letting Agents three monthly report.
These results are in line with other market indicators showing that the private rented sector is taking up the slack as the owner-occupier market cools.
The rise in deman has had the effect of increasing rental returns, which throughout the country rose from 4.8% to 4.9%. The survey shows that the value of houses to rent in prime central London rose by 8.3%, while flats rose by 13.7%.
Despite these returns it is felt that investment landlords are having a 'wait and see' attitude to property prices before making new investment decisions.
Rents have increased moderately over the last six months with the latest figures showing a rise of 3% for houses and 7% for flats. These increases are largely driven by the London market.
Commenting on the results, Ian Potter, ARLA's head of operations, says: "This steady rise in rental growth that we see yet again, coupled to clear evidence that there is no unusual selling, proves once again that the credit crunch effect on the private rented sector exists only in the imagination. This is underlined by the short void periods and the length of time that tenants stay in rental properties."
The credit crunch effect on the private rented sector exists only in the imagination.
FREE & INSTANT PROPERTY VALUATION
IN JUST 60 SECONDS